This paper presents a formal theory of reciprocity. Reciprocity means that people reward kind actions and punish unkind … ones. The theory takes into account that people evaluate the kindness of an action not only by its consequences but also … the intention underlying this action. The theory explains the relevant stylized facts of a wide range of experimental …

We investigate a setting in which members of a population, bifurcated into a majority and a minority, transact with … other group. Under these conditions, we determine the optimal size of the minority from the minority?s perspective, and …